|Feb25-12, 02:15 AM||#69|
Who shipwrecked the economy?
Wake up 100 years from now and provided no major wars have destroyed Western civilization or anything, and the average person will have access to a whole bunch of goods and services that right now are only available to the wealthy, and a whole slew of additional goods and services that aren't available to anyone yet because they haven't even been created. The type of Internet they'll have, appliances, cars, healthcare available, etc...Now imagine someone then comes and says to you, "So you're from 100 years ago? Well not a whole lot has changed, the wealth gap is worse than ever now!" You'd reason, "Well by the standards of my time, you're extremely wealthy. It's just that society is unequally wealthy."
I believe society will eventually reach a point where the amount of goods and services available to the average person is so advanced that the differences in the quality of things like food, technology, healthcare, etc...available to a wealthy person versus an ordinary person, will be very minor. For example, at some point, they'll probably get where they can grow you a new organ or body part if you need one. But it will cost a whole lot and only be available to those with serious $$$. Give it enough time however and the technology will advance to where everyone can have a new bodypart grown if they need it. Things like that.
So that is what I mean by the wealth gap will only continue to close. Financial assets-wise, we will always have "rich" and "poor."
Compare the difference in the standard of living of the average person versus a wealthy person in the 19th century to today. We still have "wealth disparity," but the goods/services available to the average person today have really closed up the actual disparity a good deal. A whole lot of stuff that one used to need to be rich to get access to, one now can get easily. Just as we see the massive difference in standard of living between a regular and wealthy 19th century person, a gap that is now very narrowed, 100 years from now, people will look back at the gap in standard of living between a regular and wealthy person of the 20th and 21st centuries and see that the gap has been closed even further. Also, one isn't supposed to live off of minimum wage.
|Feb25-12, 08:49 AM||#70|
October 13, 2005 Congress passed bankruptcy legislation affecting repurchase agreements (repos). The legislation stated that mortgage-backed securities would become sole possesion of lenders in a repo in which the borrower defaulted on payment of the loan. Legislation similar to that which affected the repo market.
November 10, 2005 the Federal Reserve announced that on March 26, 2006 they would no longer publish data on the M3 money supply...which includes data on what was then a rapidly growing repo market. Dun dun dun! Conspiracy? Did this lack of transparency in a shadow banking market lead to a collapse of the economy and did the Fed regret/know it?
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